Yellow metal steady scales Rs 52,000; buy on dips
Gold rose above Rs 52,000 per 10 gm on September 1 in Indian markets following a positive trend in the international prices that were holding steady near a two-week high on as a weaker dollar.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.7 percent at Rs 52,067 per 10 gram at 0920 hours. September silver futures were trading at Rs 67,318 per kg, up 2 percent.
In international markets, spot gold was little changed at $1,968.98 per ounce after hitting its highest since August 19 at $1,976.14 on August 31, a Reuters report said.
“The dollar index held close to a more than two-year low against its rivals, making gold less expensive for holders of other currencies,” the report added.
Gold and silver gained amid weakness in the dollar index, slips in US 10-years bond yields, and weaker than expected economic data from developed economies.
Gold gained around 0.25 percent to settle at $1,978.60 per troy ounce and silver gained 3.62 percent and settled at $28.59 per troy ounce.
Both the precious metals extend gains on August 31 after weaker-than-expected data from China and Japan. India's June quarter GDP contracted 23.9 percent and the rupee plunged again.
“India and China border tensions also supported prices of both the precious metals,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol. Bullion prices were also supported by US Federal Reserve members' comments that that lower interest rates could stay long to bring the economy on track.
“The buy-on-dip strategy will work in both the precious metals in Tuesday’s session. We expect prices of both the precious metals to remain volatile and any dip in the prices will be the opportunity to buy again,” he said.
Jain added that on MCX, gold has support at 51,550-51,330 and the resistance at 51,980-52,220 levels. Silver has support at $28.20-27.88 and resistance at $28.80-29.